Private Equity

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Raymond acquires 59% in Maini Precision Products for Rs.682-Cr; Paragon Partners exits

Press Release   YourStory  

Mumbai-headquartered, publicly listed branded fabric and fashion retailer Raymond Ltd has acquired a 59.25% stake in Bengaluru-based Maini Precision Products Ltd (MPPL) for INR 682 crore. The acquisition will be concluded through Ring Plus Aqua Ltd (RPAL), a subsidiary of JK Files and Engineering Ltd (JK Files). Post the acquisition, Raymond will consolidate JK Files, RPAL and MPPL businesses and will form a new (yet to be named) subsidiary that will focus on precision engineering products. Raymond will hold 66.3% in the new firm which will be headed by Gautam Maini, founder of MPPL. MPPL has 11 manufacturing facilities in India across two verticals i.e.,aerospace, which comprises precision products manufactured for aerospace and defense; and automotive and industrial, that comprises precision products for internal combustion engines, fuel injections and transmissions, EV components, hydraulics and industrial as well as agriculture. MPPL generated around INR 750 crore in total revenue in FY23 with 13% EBITDA margin. Exports account for about 70% of its revenues. As part of the deal, mid-market private equity firm Paragon Partners has sold its approximately 27% stake in MPPL. Paragon Partners had invested in Maini Precision Products in two tranches in 2016 and 2019.